If you set up a 1 bbl system in a local pub/restaurant, how would you do it? All the licensing and permitting would be in place. I am just thinking of the system. Not on the total cheap, but best price with workability. This is probably fiction, but who knows.

Ales only
31 gallons, one batch per week maybe every two weeks
Probably 3 – 42 gallon fermenters
No distribution, only in house draught service

My thoughts:
Three tier system
Electric heat on mash and sparge water
Mash in 150 qt. marine cooler with copper manifold
Two 20 gallon kettles
Boil on stock pot burners
Cool with immersion cooler
Pump into fermenter
A cool room for fermenting – AC at 65 or so

This is just a basic outline. What are your thoughts? Punch holes in it. I don’t know anyone who has brewed a 31 gal batch.

There is a "nano" brewing system at this site: pico - Brewing Systems Inc.
I don't know if they are still in business but you might get some ideas from their set up, 55gal stainless drums aren't too hard to find. Also, look around on the "probrewer" website in the classifieds section, they usually have some pilot breweries.
And if you can find a copy of the Frankenbrew video by Tom Hennessey, it is full of ideas as well.

Is there an "established" way to ferment in the kegs, or is it something I would have to work out? I am pretty handy, but it would have to be health dpt. approved like you said. Thoughts?

I remember a prior post that you made. Have you given this a try?

There are several 1/2 barrel fermentor ideas out there. Commercially Sabco make some here. In BYO a few months back they did a spotlight of some pro brewers working on a homebrew sized system. One place fermented in 1/2 barrels. Also Yuri_rage has a recent build on here to turn a keg into a pretty slick conical http://www.homebrewtalk.com/f51/diy-...menter-123770/

If you do a search I've seen plenty of designs on here to fement in kegs. Some are as simple as taking the diptube assembly out and put in a rubber stopper with an airlock. Others are more complicated which involve cutting off the top of the keg then taking the cut top and assembling a system to clamp it back on to provide an assessable opening to be able to rack and clean.